Watermark is the copy deterrence mechanism used in the multimedia signal that is to be protected from hacking and piracy such a way that it can later be extracted from the watermarked signal by the decoder. Watermarking can be used in various applications such as authentication, video indexing, copyright protection and access control. In this paper a new CDMA (Code Division Multiple Access) based robust watermarking algorithm using customized 8 × 8 Walsh Hadamard Transform, is proposed for the color images and detailed performance and robustness analysis have been performed. The paper studies in detail the effect of spreading code length, number of spreading codes and type of spreading codes on the performance of the watermarking system. Compared to the existing techniques the proposed scheme is computationally more efficient and consumes much less time for execution. Furthermore, the proposed scheme is robust and survives most of the common signal processing and geometric attacks.